City economy grows 11.2 percent in nine months

Saturday, September 25, 2010 16:52

The Ho Chi Minh City’s economic growth is estimated to reach nearly VND305 trillion (US$16 billion) in the first nine months of the year, up 11.2 percent over the same period last year, said director of the city Department of Investment and Planning Thai Van Re on September 24.

People shop at a supermarket in HCMC. The city’s economy well grows, partially thanks to large consumption in the first nine months of the year, according to Mr. Thai Van Re, director of the city Department of Planning and Investment (Photo: SGGP)

Of the economic growth, service sector sees most increase of 54 percent, followed by industry and construction with 46 percent.

Mr. Re was speaking at meeting chaired by the city People’s Committee Le Hoang Quan to review the socioeconomic condition in the first three quarters and discuss key tasks for the final quarter of the year.

Besides achievements, the city leaders admitted a high risk of inflation as the world’s economy recovery has led to a price insurgence of several commodities.

Additionally, they also confessed the sluggish progress of traffic projects such as upgrading 25B Highway and Do Bridge, and construction of a highway running from Tan Son Nhat Airport through Binh Loi Road to the outer belt road.

The traffic gridlock has yet been improved, the environment and water pollution have yet been thoroughly handled and procedures for wastewater treatment and basic infrastructure projects still present difficulties and complication.

One of the causes for the project’s sluggish progress is from weak capacity of investors and consultant, supervisory and executing units, according to Mr. Nguyen Thanh Tai, standing deputy chairman of the city People's Committee.

Notably, though it is in mid rainy season, the power shortage still occurs, affecting residents’ life and businesses’ production.

The city leaders have given some instructions for the rest quarter of the year.

According to the city deputy chairwoman Nguyen Thi Hong, relevant authorities should strengthen monitoring prices at markets and retail places as it has been time to prepare goods for the next Tet (Lunar New Year).

They should prevent a scarcity of goods and sales of low quality commodities, and well carry out the city’s ongoing stable price program, she said.

Meanwhile, the city chairman Le Hoang Quan instructed relevant sides to hasten the progress of construction and capital release of projects invested by the state budget, with priority to which expected to complete this year and the following year.

He also ordered a stopover to ineffective projects.

Authorities should care about and give assistance to households having evacuated for the projects’ site clearance, he added.

Country’s September CPI rebounds

Vietnam’s consumer price index (CPI) in September rises 1.31 percent over the previous month, highest level in five consecutive months, when the index just fluctuated below 0.3 percent, according to the General Statistics Office.

In the first nine months of the year, CPI reached an average rise of 8.64 percent year on year.

With such CPI increase, the country’s target to restrain the inflation rate at seven to eight percent this year is likely to be tough.

Of the index, education sector abruptly rocketed up to over 12 percent over August, tagged along by housing, electricity, water and building materials, and traffic sectors.

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